Columbia Yukon - Corporate Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 6, 1996-- Columbia Yukon Resources Ltd. is pleased to report that follow-up testing of geophysical targets developed from the 1995 exploration program, is starting immediately.

This follow-up work will see drilling of targets on 8 or more properties including the VBE 1 and Yaco claims under option from International Can-Alaska Resources (ICA) and Yanks Peak Resources (YPR), respectively.

VBE 1

The VBE 1 property is on the east border of the Diamond Fields Resources discovery block and nickel-copper-cobalt showings found in outcrops on the claims may be related to deeper bodies of a similar type to the Eastern Deeps mineralization of the world class Voisey's Bay deposit. Grab samples from the showings located close to tide water returned assays that ranged as: 0.037 percent-0.813 percent Ni, 0.29 percent-0.523 percent Cu and 0.037 percent-0.098 percent Co.

Phase II work is already underway on the VBE 1 block to complete a deep geophysical probing of the claims. One or more deep drill holes for geological information will be selected and drilled this year subject to obtaining government permits. Columbia Yukon can earn a 70 percent interest in the property from ICA.

YACO

Airborne geophysical targets on the Yaco claim block 10 kms south of the Voisey's Bay discovery block were detailed to select drill targets in April 1996. Columbia Yukon Resources Ltd. has committed to a drill program to test a strong conductive anomaly on the ML 904 claim block.

The drill program will start promptly since the permits for such work are in place. The area is underlain by sulphide rich Tasisuiak gneisses which straddle the important boundary between the Nain and Churchill (Rae) Provinces just south of the Voisey's Bay discovery. Columbia Yukon can earn a 70 percent interest in the property.

ML 1760 and ML 2723

Drill programs have been confirmed for ML 1760 (100 percent Columbia Yukon) and ML 2723 (under option to Consolidated Venturex Holdings Ltd. - CVA-VSE). Geological and geophysical ground work is to be carried out on 10 other high priority targets defined by the major exploration effort carried out in 1995. At least 6 of these targets are expected to be drilled this season since previous approval for drill permits has been obtained.

The budget for the work contemplated in 1996 amounts to over $1,400,000 for which provision will be made by completing previously announced flow-through financing in the amount of $1.5 million dollars. This budget does not include provisions for deep testing of the Alliger Lake Ni-Cu-Co mineralization on ML 1506 which is subject of an option agreement with Silverstone Resources Ltd (SVT). The planning of further work on ML 1506 is subject to discussions now underway between Columbia Yukon and SVT.

ON BEHALF OF THE BOARD OF DIRECTORS

Douglas L. Mason Director -0-

Note to Editors: The Alberta Stock Exchange nor any other regulatory body has reviewed this news release and therefore do not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Columbia Yukon Resources Ltd.

Douglas L. Mason, 604/683-3070